A clear policy sells
Return policy is one of the most-read pages on any store, because it is how a shopper assesses their risk. A vague or restrictive policy costs sales from people who never return anything.
The customers deterred by a poor returns policy are not the ones who would have returned. They are the cautious ones, who are frequently the best customers.
Make processing cheap
- Self-service requests with automatic eligibility checking
- Labels generated without anyone opening a carrier portal
- Restock decision driven by recorded condition
- Refund triggered on receipt where policy allows
- Reason captured every time, from a fixed list plus free text
Done manually a return costs fifteen minutes of someone's time. Automated properly it costs two, and the customer experience is better.
Offer exchange before refund
A customer returning something for the wrong size wants the right size, not their money back. Offering the exchange first retains the revenue and frequently the goodwill.
Make the exchange easier than the refund and a meaningful proportion take it.
The reason data is the point
| Reason pattern | What it means |
|---|---|
| Wrong size, one product | Sizing guide or listing is wrong |
| Not as described, one product | Photography or description problem |
| Damaged, one carrier | Packaging or carrier problem |
| Changed mind, generally | Normal, unless it is rising |
| Faulty, one supplier | A supplier conversation is overdue |
Return reasons are operational intelligence and most stores never aggregate them.
Watch the rate per product
A product with a high return rate may be unprofitable despite good revenue. Returns cost the outbound shipping, the return shipping, the processing time and frequently the resale value.
Calculating profitability after returns occasionally reveals that a best seller is not one.